Define the Seven Classes of Assets Used in Allocating Basis

question 101

Essay

Define the seven classes of assets used in allocating basis when using the residual method.

Recognize the components and calculation of stockholders' equity under both International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Identify and explain the comprehensive income and its components.

Discuss the implications of convertible securities and stock options on earnings per share.

Understand the reporting requirements for earnings per share, including the impact of extraordinary items and if-converted method vs. treasury stock method.

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Definitions:

Charles Darwin

A 19th-century naturalist who is best known for his contributions to the theory of evolution by natural selection.

Basic Emotions

Emotions that are unlearned and universal, that are reflected in the same facial expressions across cultures, and that emerge in children according to their biological timetable of development; fear, anger, disgust, surprise, happiness, and sadness are usually considered basic emotions.

Facial Expressions

Visible changes in the face that convey emotional states, intentions, or social communications.

Unlearned

Referring to behavior or knowledge that is innate or instinctual, not acquired or learned from experience or environment.